Well, the old (Republican) Congress has gone and the new (Democrat) Congress has been sworn in. Yesterday or the day before - in Pelosi's first hundred hours, the House passed a bill increasing the minimum wage.
Personnally, I'm opposed to the idea and concept of a minimum wage. Right now it costs an employer twenty-five or thirty dollars to employ five people for an hour. The House plan raises the minimum wage to $7.25 an hour in just over two years. So for the same employer to employ the same five people for an hour its going to cost him thirty-five or fourty dollars an hour.
The employer than has three choices. He can employ his five workers for fewer hours - and make a substandard product. He can lay one of his workers off - and potentially make the fifth worker homeless. Or he can raise the price of his product - which goes directly into inflation
Which is why I'm opposed to the raising of the minimum wage. I'm opposed to homelessness. I'm opposed to substandard products and production. And I'm opposed to inflation.
I sincerely hope the Senate does not pass this bill or, if they do pass it, its at a lower rate.
Ever since Gingrich (1994) there has not been an increase in the minimum wage. Ever since Gingrich inflation has been at a steady three or four percent. That means that in five years inflation is going to be fifteen or twenty percent. With this minimum wage hike, inflation for the five years is going to be thirty or fourty percent.
Raising minimum wage is a bad thing.